Ethanol subsidies & Michigan corn growers

Michigan corn farmers may be losing a ‘safety net’. The Congress is expected to vote soon on ending ethanol subsidies. The move is expected to save the federal government $1.3 billion this year.

Ethanol in the United States is mainly produced using corn. Michigan farmers increased their corn production in recent years as federal mandates required ethanol in gasoline.

Jamie Wilson is with the Michigan Corn Growers Association. She says the ethanol subsidy has been a ‘safety net’ for many Michigan corn farmers. But Wilson says the end of the subsidies doesn’t mean the end for corn ethanol.

“You know, just because the subsidies aren’t there doesn’t mean…that people are going to stop using ethanol.”

Wilson says ending the corn subsidy should not affect ethanol production in Michigan.

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The U.S. Environmental Protection Agency says gas stations can now sell gasoline blended with 15% ethanol for all cars built in 2001 or after. Right now, when you fill up in Michigan, your gasoline has 10% ethanol.

The EPA says E15 gasoline will help reduce our need for foreign oil. Ethanol is made from plants like corn. The EPA only tested the effects of E15 on emissions and catalytic converters.

But ethanol is corrosive. Patrick Kelly is with the American Petroleum Institute.